It's no secret that Florida was one of the states that was hit the hardest by the "burst" of the housing bubble several years ago. Like the rest of the country, it has been a long slog to recover value for homeowners throughout the state. And, for many, paying the monthly mortgage payment is still a serious concern. Foreclosures remain an issue in Florida.
When the housing bubble burst in America a few years back, it was one of the greatest losses of wealth the country had ever experienced. For some Florida residents, all of the mortgage payments they had made for years - building equity in what many people considered to be the safest investment of all - suddenly seemed to have been for nothing. It was a rough time for millions of homeowners throughout the country, but Florida was hit especially hard.
For months our South Florida readers have probably gotten used to seeing nothing but good news about the residential real estate market in the local area. Indeed, there has hardly been a month where the real estate data and figures gave anyone involved in the real estate market a reason to pause and think about any negative factors to consider. But, on the other hand, many of our readers probably also know that Florida was one of the states that was hit the hardest by the bursting of the so-called housing "bubble." So, perhaps it should come as no surprise that foreclosure actions are still a problem throughout the state - including in South Florida.
Purchasing a home is an exciting milestone in life. Before buying, home seekers are put through a strenuous process by banks to see if they qualify for a loan. If they do qualify, then they can purchase their home. However, though the mortgage payment may be manageable at first, unexpected life events can render the payments difficult to make. The loss of a job, a cut in wages, or increased expenses from health-related issues may all affect a family's ability to pay their mortgage bill.
When a South Florida homeowner fails to make a mortgage payment on time, it can be a problem. And when a homeowner is faced with a situation where they are consistently making delinquent payments the problem can be magnified. But the worst case scenario is a foreclosure, and that appears to be the situation for former Miami Dolphins quarterback Daunte Culpepper.
A South Florida reader who frequents posts here has seen one undeniable trend: the local real estate market, for the most part, is as hot as can be right now. Great news all the time, right? That is usually the case, but for many homeowners in the area good news is still something they are waiting for.
A previous post here back in September discussed the positive implications for homeowners in Florida coming out of the historic $25 billion settlement that the majority of states agreed to with some of the country's largest mortgage lenders. A large portion of the funds agreed to were to go directly to helping homeowners who were facing delinquent payments and other problems associated with their mortgage plans. However, Florida lawmakers have been wrangling with the state Attorney General over about $300 million of the funds. Now, it appears the two sides have come to an agreement.
It has been quite a while since the historic $25 billion settlement between forty-nine states and some of America's largest banks has been a topic here. However, there are perhaps some of our South Florida readers familiar with the housing case that has reportedly helped many reduce the principal amount owed on their mortgage.